Oil States International (OIS) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $208.3 million, net income was $6.0 million, diluted EPS was $0.09 and Adjusted EBITDA was $24.0 million; revenue rose 7% and Adjusted EBITDA 2% sequentially.

• FY 2023 revenue was $782.3 million, net income was $12.9 million and Adjusted EBITDA was $87.8 million, compared with $737.7 million, a $9.5 million net loss and $74.0 million, respectively, in 2022.

• Offshore / Manufactured Products drove sequential growth, offset in part by weaker U.S. land-based completion activity and year-end declines in Well Site Services and Downhole Technologies.

Financial highlights

• Q4 revenue of $208.3 million increased 7% QoQ and 3% YoY; operating income was $7.8 million, versus $6.2 million in Q3 and $3.3 million in Q4 2022.

• Q4 net income was $6.0 million, or $0.09 per diluted share, versus $4.2 million and $0.07 in Q3 and $2.9 million and $0.05 in Q4 2022.

• Q4 Adjusted EBITDA was $24.0 million, up 2% QoQ and 17% YoY; FY Adjusted EBITDA was $87.8 million, versus $74.0 million in 2022.

• FY 2023 revenue increased to $782.3 million from $737.7 million; net income improved to $12.9 million from a $9.5 million net loss in 2022.

Segment performance

• Offshore / Manufactured Products revenue rose 24% QoQ to $137.9 million, its highest since Q4 2015; operating income was $25.2 million and Adjusted Segment EBITDA was $30.3 million, with a 22% margin.

• Offshore project-driven revenue increased 39% QoQ; quarterly bookings were $120 million, backlog was $333 million, quarterly book-to-bill was 0.9x and FY book-to-bill was 1.1x.

• Well Site Services revenue fell 14% QoQ to $51.2 million; it posted a $1.1 million operating loss and $5.9 million Adjusted Segment EBITDA, with a 12% margin versus 16% in Q3.

• Downhole Technologies revenue declined 18% QoQ to $19.1 million; operating loss was $6.7 million and Adjusted Segment EBITDA loss was $2.9 million, including $1.3 million of excess and obsolete inventory provisions.